Vancouver Stock Exchange Pockets of excitement

Despite some pockets of excitement, the general market in Vancouver was recently characterized by a local mining analyst as “bleeding badly.” Both the Vancouver Stock Exchange composite and resource indices lost ground over the period ended June 18.

The resource index slipped 9.08 points to finish at 547.27, while the composite index closed down 6.28 at 560.33.

Gold managed to regain some lost ground after pulling back to the US$366 level from last week’s highs in the US$372 range. Bullion finished the period at US$370.25.

Galico Resources recently announced that a planned 400,000-unit private placement priced at $2.25 per unit will not proceed. The deal had been a replacement for a cancelled deal priced at $3.

The company recently mobilized field crews to its Metla property in northwestern British Columbia. Previous work on the property resulted in the discovery of numerous boulders containing gold and base metals. Galico is earning a 60% interest in the Metla property from Cominco. Galico slipped a penny over the period ended June 18 to close at $1.84.

Columbia Gold Mines continued to shed value over the week, finishing at 90 cents. The company has been on a steady decline from its recent high of $1.25 after announcing an option deal with Eurus Resource. Eurus can earn a 50% interest in the company’s Spectrum/ Hawk gold property by spending a total of $8 million on exploration and development.

Eurus Resource dropped 25 cents, finishing at $1.80. The company recently completed drilling six holes on its Rock & Roll joint venture with Thios Resources in the Iskut River area of northwestern British Columbia.

Two holes encountered dyke material while the remainder cut massive sulphides ranging up to 28 ft. No assays have been released.

Thios finished the period off six cents at 35 cents.

NDU Resources continued to add to last week’s gains, closing up 37 cents at $2.32. Billiton Resources is currently drilling on the company’s Blende property although no assay results have been released. Billiton can earn a 50% in the Yukon property by spending a total of $4.3 million.

A good intersection from a recent drill hole on the Paymaster project in Ontario did not seem to help 40% owner American Reserve Mining. The hole intersected 97.5 ft. grading 0.29 oz. gold. American Reserve closed down seven cents at 58 cents. Placer Dome holds the remaining interest in the property.